Chinese apple store extension in supply

• In 2017 as apple opened its 40th store in china they led to an extend in suppy

The Diagram

Individual supply and market supply

• Individual Supply is the amount of a commodity that a certain company is willing and able to sell at a specific price during a specific period

• Market supply is the total amount of an item producers are willing and able to sell at different prices, over a given period of time

• The market supply curve is the curve that shows the goods or service supplied in different price levels

The Diagram Example

The diagram says that a company called airbus produces 300 planes in 300,000 dollars but its rival produces 320 planes in 300,000 dollars , but in the plane market there is 620 planes added

Conditions of supply

A change in non-price factors affect the supply of good or service will cause a shift in supply curve.

• A rightward shift of the supply curve from S1 to S2 is described as an increase in supply (rather than an increase in the quantity supplied).

• By contrast, a leftward shift of the supply curve from S1 to S3, results in a decrease in supply (rather than a fall in the quantity supplied).

• For example, Japan’s tsunami in March 2011, the country’s worst natural disaster, reduced the supply of major manufacturers such as Sony, Panasonic, Toyota and Honda.

Graphical representation for rightward shift and leftward shift

Questions

1. What is meant by supply?

   
   

2. What are the main determinants of supply?

3. What is the law of supply?

4. How does a contraction in supply differ from an extension in supply?

5. How does market supply differ from individual supply?

6. What is the difference between a movement along a supply curve and a shift in a supply curve?

7. What are the causes of shifts in the supply curve?

Answers

1. Supply is willingness of sellers to sell a particular amount of goods or service in different price levels

2. Opportunity cost , weather and time are one of the most important determinants of supply

3. The law of supply states that price and the quantity supplied are closely related

4. a contraction in supply is when the supply is low while the extention in supply when there is a massive increase in supply

5. Market supply is where alot of producers come and produce goods and service while individual supply is about a company or private firm producing a amount of good or service in different price levels

6. A shift in supply curve states how is the condition of the supply while a movement in supply curve represents how the price of the good or service and the quantity supply is balanced

7. Natural disasters or inflation can cause shift in supply curve